Still possible to buy refurb then sell for profit ?

buggy_boy

Crashy_Time wrote: »

House prices are dependent on other people borrowing, and having wages to pay your rent, and as property is very illiquid you are stuck if prices crash or no one will pay your rent level, stocks and shares make much more sense IMO.

I think the point was he was its a long term investment, hence it does not matter if prices reduce, in the long term property always has and likely always will increase in value.

Stocks and shares also have a massive risk, after the crash of 2008 my pension which was invested in stocks and shares halves in value, it has barely recovered to what it was pre 2008, however the property I owned in 2008 has recovered and increased in price.

When it comes to flipping property profit can still be made but it is now stacked against you so likely not worth the risk.

Doozergirl

Anyone else working on a $100 million project?

shirlgirl2004

Doozergirl wrote: »

Anyone else working on a $100 million project?

You don't need large projects to make decent money, a series of smaller projects will give a decent return.

From the website I linked to earlier.

Newchurch Road
£25,800 Purchase Price

£12,000 Refurbishment Cost

£3,073 Buying/Selling Legals + Estate Agent Fees

£40,873 Total Expenditure

£70,000 Sold Price

Individual concerned has several projects on the go at any one time. Some he sells some he rents out so as to minimise capital gains in a year.

need_an_answer

shirlgirl2004 wrote: »

You don't need large projects to make decent money, a series of smaller projects will give a decent return.

From the website I linked to earlier.

Newchurch Road
£25,800 Purchase Price

£12,000 Refurbishment Cost

£3,073 Buying/Selling Legals + Estate Agent Fees

£40,873 Total Expenditure

£70,000 Sold Price

Individual concerned has several projects on the go at any one time. Some he sells some he rents out so as to minimise capital gains in a year.

So how long did the flip take from purchase to sale and how many man hours did the developer put in?

Maintenance fees other than legal costs whilst working on it and actually its still not a salary that is going to give a huge annual return.
I imagine that you would need a fair bit of equity behind you to hold in the value of the property its not the sort of thing that mr and mrs average are able to have too many of on the go at one time even if they have a "series of small projects".


The days of finding anything with a purchase price of £25k is rapidly declining the further you travel south from Scotland.
Moreso anything that remotely comes in with a refurb cost of £12k.

In my neck of the woods that would possibly do a roof and windows!

shirlgirl2004

need_an_answer wrote: »

So how long did the flip take from purchase to sale and how many man hours did the developer put in?

Maintenance fees other than legal costs whilst working on it and actually its still not a salary that is going to give a huge annual return.
I imagine that you would need a fair bit of equity behind you to hold in the value of the property its not the sort of thing that mr and mrs average are able to have too many of on the go at one time even if they have a "series of small projects".


The days of finding anything with a purchase price of £25k is rapidly declining the further you travel south from Scotland.
Moreso anything that remotely comes in with a refurb cost of £12k.

In my neck of the woods that would possibly do a roof and windows!

Not sure how long it took without looking but that's why there are several on the go and in the area there are fair few at these prices. The individual started with almost no money and relies on joint venture for some projects. Not sure which maintenance fees you're referring to but the individual has listed everything but tends to just lump them together when demonstrating figures so as to give the idea to save laborious breakdown.

Marketing of the properties begins before they're finished and he holds off completing if he needs completion on another due to cash flow.

I went and checked from purchase to sale (completion) was 6 months. This was the first property he'd done so everything was quite slow and a learning curve. Since then he's stacked more projects up. Even assuming only doing one at a time that would be £60k a year before CGT etc but of course he's doing more than one at a time as he concentrates on sourcing etc and leaves the builders to refurb.

need_an_answer

shirlgirl2004 wrote: »

Not sure how long it took without looking but that's why there are several on the go and in the area there are fair few at these prices. The individual started with almost no money and relies on joint venture for some projects. Not sure which maintenance fees you're referring to but the individual has listed everything but tends to just lump them together when demonstrating figures so as to give the idea to save laborious breakdown.

Marketing of the properties begins before they're finished and he holds off completing if he needs completion on another due to cash flow.

See the thing is without knowing how long the flip took could have quite a difference.

I can give a similar example

purchase price £113500
renovation cost £5000
Fees £ 10000

Sale price £160000

Looks on the face of it a good deal but what I didn't add in was the fact that I rented the property out for 4 years before selling.
The generation of rent has kept it ticking over monthly with utility bills and council tax being paid by the tenant and the majority of the profit has been generated by a rise steadily in the market.

My first venture into renovation was an inherited house which instead of flipping was used to fund a series of BTL properties each with varying work needed from some to none.

In my experience and in the area of the country I live it is far preferable to me to BTL with some renovation work rather than flip.

shirlgirl2004

need_an_answer wrote: »

See the thing is without knowing how long the flip took could have quite a difference.

I can give a similar example

purchase price £113500
renovation cost £5000
Fees £ 10000

Sale price £160000

Looks on the face of it a good deal but what I didn't add in was the fact that I rented the property out for 4 years before selling.
The generation of rent has kept it ticking over monthly with utility bills and council tax being paid by the tenant and the majority of the profit has been generated by a rise steadily in the market.

My first venture into renovation was an inherited house which instead of flipping was used to fund a series of BTL properties each with varying work needed from some to none.

In my experience and in the area of the country I live it is far preferable to me to BTL with some renovation work rather than flip.

You must have missed my update to the post. The flip took 6 months. It was his first flip, he went on holiday etc etc. Subsequent ventures have been quicker because he isn't doing the work himself. He's "up north" and trades are so much cheaper there so he worked out it was cheaper to get trades in than do it himself. Also running several projects back to back.

shirlgirl2004

genau wrote: »

I believe tradesman are a lot cheaper up north, building materials can be cheaper up north as well.
I've looked at that location and Manchester's less than an hour from Leeds so satellite towns are probably going to be growth areas.

I've been thinking about doing some larger scale projects but my lack of experience with building is what holds me back.

The building game isn't for me. For starters he lives locally so can keep an eye on projects I live far too far away to pop in and check progress etc. Build to rent is where it's at but not for me. Buy in the HS2 areas and get capital gains whilst getting a modest income.

00ec25

genau wrote: »

The point of the thread is to discuss earning money through property through various means. ...

That's one of the reasons these threads are useful because of the tens of thousands of people who can view them for years to come. The more people share the better and more useful they are

then why is it that on all the threads you start you come back a few hours later and delete most of your question?????

had I not dug out the cache this thread was heading for an early death like most of your other ones have done

if you want it to be of benefit for future generations then leave the full glory of all your words in place.

shirlgirl2004

genau wrote: »

I'd love to have the confidence to do a new build. I've learned though that if things run over budget unexpectedly and projects can't be finished there's a risk of loosing money. Of course there's always a risk to anything I suppose

Don't know that much about HS2 though although isn't it quite a long way off?

Yes but surprisingly HS2 is already affecting house prices and once decent journey times are achievable that is only going to increase.